Murphey v. Mid-Century Insurance Company
United States District Court for the District of Kansas
2014 WL 2619073 (2014)
After a car accident, Mid-Century Insurance Company adjuster Kevin Lash negotiated a settlement by email with the attorney for Beverly Murphey (plaintiff), eventually emailing an offer of $221,000 to settle all claims, which Murphey's attorney promptly accepted; Lash then claimed this was a typographical error and that he had intended to offer $121,000. Murphey sued Mid-Century and the other driver (defendants) to enforce the $221,000 settlement as a binding contract, and Mid-Century counterclaimed for rescission, denying any enforceable agreement existed; Murphey moved for summary judgment on her breach-of-contract claim and for judgment on the pleadings against Mid-Century's rescission counterclaim.
Whether a party will be bound to the terms of a settlement agreement despite a unilateral mistake caused by a typographical error in an email.